Recent reports by RTV about Euro Exim Bank have created a sensation across the country. The revelations concerning fake guarantees have raised significant concerns. It appears that Minister Ponguleti Srinivas Reddy may have deceived the Andhra Pradesh government. Allegations have surfaced that Reddy submitted fake bank guarantees in connection with the RDSS contract in the united Nellore district.
In 2023, Raghava Constructions, associated with Ponguleti, entered into an agreement with the Andhra Pradesh government. SPDCL had previously notified Raghava Constructions that the guarantee provided by Euro Exim Bank had expired. Consequently, SPDCL requested a new guarantee from a national bank. However, several allegations have emerged against Euro Exim Bank, including criticisms over the use of guarantees from a bank not associated with the country. Doubts are being raised about how a bank valued at merely ₹8 crores could issue guarantees amounting to ₹100 crores. Accusations of Ponguleti cheating the government, despite holding a significant ministerial position, are under scrutiny. RTV has also revealed that Ponguleti and Megha Companies have received guarantees through Euro Exim Bank.
As part of its agreement with Andhra Pradesh Southern Power Distribution Corporation Limited (APSPDCL), Raghava Constructions utilized a fake foreign bank guarantee. Typically, such guarantees should be issued by recognized banks in India. The use of Euro Exim Bank, a foreign bank with no connection to India and without RBI recognition, has caused controversy. Ponguleti’s actions appear to have misled the AP government using this fake bank guarantee. The fake guarantees were submitted for various projects across Andhra Pradesh, amounting to approximately ₹80 crores, with the total project value estimated at ₹800 crores.
The key questions now are whether Ponguleti will acknowledge his mistakes, whether any actions will be taken against him following the exposure, and whether his company will be disqualified for using fake bank guarantees to deceive government agencies. RTV had previously highlighted that Euro Exim Bank, valued at ₹8 crores, issued guarantees worth hundreds of crores. It also exposed how major contracting firms like Megha have exploited fake bank guarantees to siphon off public funds. With continuous reports from RTV, the RBI has written to the CBI for an investigation. Congress MP Karti Chidambaram has also written to the RBI twice about the Euro Exim Bank scams. It remains to be seen what actions will be taken against those involved in such frauds, particularly when Ponguleti, a Congress party member, has benefited from these fake guarantees.